Imation revenue falls in second quarter

Second quarter revenues fell 16.2 percent, to $270.6 million, for an operating loss of $10.3 million, including restructuring and $4.3 million in other charges.

Mark Lucas, Imation's president and chief executive, said the declines weren't a surprise and were the result of a timing lag between anticipated growth in the Oakdale-based information storage company's newer products and declining sales of its traditional storage devices. He also attributed the drop to macro-economic factors, including the European economic downturn, a soft global IT environment, negative currency exchange rates, and a weak U.S. retail environment.

"We are making steady progress on our strategy in line with the plans we have previously outlined," he said.

Sales of the company's XtremeMac products were up, and margins on the company's magnetic tape were the highest in more than a year.